Tuesday, 25 January 2011

Favorable Credit Information Report is required for availing loan from any financial Institution

In this modern era almost all people are approaching banks or any financial institution to take loan to meet any of their financial needs such as buying a house, doing business, marriage of self or children, education or self or children, purchasing a car etc. etc. But do you understand that the possibility or getting a loan is very less than not getting a loan. There are so many factors to be considered by a money lender or any lending agency to grant a loan.

The primary intention of the lending agency is that to know whether you will repay the loan amount or not, even if it is secured by proper collateral security. They will guarantee the repayment before sanctioning you the loan amount. For this purpose they will check whether you are a defaulter on any of your payment including credit card, utility bills or any previous loan amount. You may be wondering how they check these details. This is very much easy through Credit information agencies. Credit information agencies are there in almost all countries. In India there is Credit Information Bureau (India) Limited (CIBIL),  Credit bureau (United States), Credit Reference Agency (United Kingdom) etc are also examples of Credit Information Agencies.

This Credit Information Agencies collect all possible information from banks, financial institution and money lenders etc., and keep a credit history of almost all people who deal with credit cards or any type of loan. When you apply for a loan the money lenders check with such credit information agencies before sanction your loan. They can get an idea about your loan repayment nature and the history or your past and present loan.

If you have a poor repayment history of credit card or loan repayments or if you have already taken so many loans and you have not that much income to pay off all such loans, if your residential address has a defaulter history (Anybody who stayed in your residential address earlier and made default of any loan amount), if your co applicant is a loan defaulter or if you become a guarantor for somebody else and he or she is a defaulter, the Credit reporting agency has a track record of all of them and the possibility of getting you a loan is very less.

So before applying for a loan you must check with the Credit Information Agencies that your credit report is favorable or not.  You can collect a copy from them and study it well and if there is any false information about you, you should approach the related bank or financial institution, collect the proof and submit it to the credit information agency to update the correct information.

How can you collect your credit information report?

You can get your credit information report from Credit Information Bureau (India) Limited (CIBIL) through submitting application in filled CIR Request Form with Identity Proof such as PAN Card, Passport or Voters Identity Card and required fees through online payment or Demand Draft.

You can pay the required fee through online also by completing the following steps.

Fill up the CIR request form by online and pay the required fee through net banking or credit card.

Get registration ID and transaction ID via email and send it to CIBIL with Identity proof through post.

Download CIR Request form CIBIL

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1 comment :

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